Culture first, tech second: Doing multifamily short-term rentals the right way with Frontdesk

Updated on May 1, 2023

Have a growth mindset is a value you’d expect to see on any tech startup’s list of core values. But when it comes to Milwaukee-based Frontdesk, it’s the last of six. The first three: Clean the toilets, do the right thing, and be a good neighbor.

Founded in 2017, Frontdesk has since carved out a niche with its tech-forward online platform offering short-term rental services in multifamily buildings in trendy urban neighborhoods.

The company also recently spun out, Levr Solutions – the same proprietary technology platform that enables their success – to the broader market of third-party short-term rental and multifamily property managers. 

Frontdesk directly manages the short-term rental portfolio in mixed-use multifamily buildings largely under revenue-sharing agreements. Its portfolio now tops 700 units and has 100 additional third-party listings across 34 U.S. cities. Its business concept has helped to make it the fastest-growing private travel and hospitality company in the U.S., according to the annual Inc. 5000 list. (It ranks No. 136 among the fastest-growing private companies in all industries.)

Co-founder Jesse DePinto attributes much of the company’s success to operating the business with good neighborliness front and center.

“If we aren’t loved by our neighbors and seen as an asset to the apartment communities that we serve, then it is not going to be a long road for us in this industry in the urban apartment space,” Jesse said in a recent appearance on the Secret Sauce of Property Managers podcast. “Trust and safety tech, for us, is just far more important than the average vacation rental, beach home tech platform.”

Founding a new-generation short-term rental experience – for guests and neighbors

When they co-founded the company, Jesse, chief product officer, and Kyle Weatherly, CEO, combined each of their experiences – Kyle’s global travels staying in short-term rentals and Jesse’s background in hospitality tech automations. They focused on multifamily apartment buildings in big cities because that sector of short-term rentals was still untapped and underserved, Jesse said.

With Frontdesk, guests receive 24/7 service that incorporates the familiar hotel amenities, like a capsule coffee machine and keyless entry, with the space and features travelers love about short-term rentals, like full kitchens and living rooms.

However, short-term rentals in multifamily buildings present a few challenges that aren’t as pronounced in single-family rentals.

Noise, for one, can travel more easily along shared walls and floors, and guests may interact with neighbors in closer proximity. Frontdesk’s model is to offer short-term rentals within larger mixed-use residential communities, meaning that long-term residents live in the other units.

Over the past 4 ½ years, the company has established protocols and leveraged technology to ensure that guests rarely, if ever, affect larger multifamily communities.

Each unit is equipped with NoiseAware noise sensors to alert Frontdesk if guests exceed a certain decibel level. The limit varies according to the time of day and scheduled quiet hours.

“With NoiseAware, we are able to set different noise thresholds for different hours of the day, which is very unique and very loved by our team,” Jesse said.

“We have found that if the guest does not respect the quiet hours of the community, then they probably are not respecting other rules of the community either, so any time we get a consistent noise violation, then we send people to the door whether it’s our own employees or hired security firms,” Jesse said.

The company added employee positions and a third shift to make sure that noise limits were enforced 24/7. Frontdesk also partners with security firms in all of the 34 cities where it operates to enforce its quiet-hours policy.

Every guest is also required to undergo identity verification and a criminal background check before their reservation is accepted. The screening process meets the same standards as screening for long-term residents in each respective multifamily community and is FCRA compliant, Jesse said.

“Just by those two simple checks, you can greatly reduce the risk of bad actors entering the community,” he said.

Free Download: Rent Responsibly Good Neighbor Guide

Modeling best practices for the short-term rental community

Not only does the Frontdesk team take steps to prevent disturbances to neighbors, they take pride in making sure their short-term rentals are an asset to the community. They accomplish that by giving priority to long-term residents in the community to rent their short-term rental suites when they have guests in town. Long-term residents receive a 20% discount at all Frontdesk properties.

One of the company’s goals is helping multifamily property managers to understand the questions to ask before allowing short-term rental operations in their community and to make sure the partners that they choose are thinking through all of the proper procedures.

Within the short-term rental industry, Frontdesk has focused on promoting and openly sharing their best practices in the multifamily space by writing white papers and speaking at conferences. The company also operates a Clubhouse room with professional short-term operator groups to help educate others on best practices like creating the right culture within your company – starting with values like cleaning the toilets and being a good neighbor.

“The best processes and the best technology only get you half of the way there,” Jesse said. “You need people in your company who actually care about this, and so a lot of it is cultural and trained and is grown throughout the organization in terms of where the priorities are.”

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